Dangote fuel price cut sparks a fierce petrol price war as marketers slash pump prices and motorists boycott expensive stations
The Dangote fuel price cut has triggered a fierce price war in Nigeria’s downstream oil sector, as motorists in Lagos and Ogun states began boycotting filling stations selling petrol above N739 per litre.
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The development followed the decision by the Dangote Petroleum Refinery to reduce its gantry price of Premium Motor Spirit from N828 to N699 per litre, forcing marketers to slash pump prices to retain customers.
MRS filling stations, which were the first to dispense Dangote-produced petrol at N739 per litre, recorded long queues as motorists abandoned outlets selling petrol above N800.
The sudden shift in consumer behaviour compelled competing filling stations to cut prices by about N100 per litre, in many cases selling below their cost of purchase, underscoring the intensity of the market disruption.
President of the Dangote Group, Aliko Dangote, confirmed during a recent media briefing that some marketers planned to maintain high pump prices despite the reduction in depot rates.
He vowed to enforce the new pricing regime nationwide.
Aliko Dangote said the refinery would deploy all available resources to ensure petrol sells below N740 per litre across the country during December and January, warning that attempts to sabotage the price reduction would be resisted.
Market checks showed significant price adjustments across Lagos and Ogun states, with several stations reducing prices from over N900 to below N800 per litre. Outlets that failed to adjust struggled to attract customers.
Major marketers acknowledged that the Dangote fuel price cut had reshaped buying patterns, with motorists gravitating towards stations offering cheaper petrol, particularly MRS outlets located within residential areas.
The Nigerian National Petroleum Company Limited also responded by lowering petrol prices from N875 to between N825 and N840 per litre, depending on location.
However, analysts say importers face losses, as the landing cost of petrol remains higher than Dangote’s ex-depot price.
Industry data suggest petrol importers could lose over N100bn monthly, while the Dangote refinery itself is projected to lose about N91bn in a month following the price reduction, highlighting the scale of the competition.
Spokesperson of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, said price now determines patronage in a fully deregulated market, noting that marketers who refuse to adjust will lose customers.
Ukadike confirmed that IPMAN has entered a partnership with the Dangote refinery, adding that independent marketers now account for the bulk of petrol evacuation from the facility.
Over the weekend, the Dangote refinery disclosed that more than 1,000 fuel trucks now load petrol daily, following a reduction in minimum purchase volumes and the introduction of a bank guarantee system.
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The refinery said the measures reflect a bold strategy to stabilise supply, deepen competition, and make fuel more affordable, as Nigeria’s downstream market adjusts to the new pricing reality.
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